In today’s world, cash is no longer king. Research conducted by UK Finance found that as of September 2021, there were 1.9 billion debit card transactions and 321 million credit card transactions made by UK debit/credit cardholders. Additionally, the report found that contactless card transactions increased by 30.5%, from 966 million to 1260 million.
In recent years, there has been an increase in popularity with flexible payment options for both consumers and businesses. In fact, 8.6 million people in the UK plan to use flexible finance schemes in the future, and it is estimated that over 20,000 businesses in the UK already have flexible finance schemes in place.
What are flexible payment schemes?
Flexible payment schemes are a form of point of sale finance that allows people to purchase goods or services and spread the payments out over an agreed amount of time. Unlike traditional credit cards and the involvement of banks, flexible payment schemes involve the consumer and the intermediary company.
Benefits for your business
Offering your customers the chance to pay for goods or services through flexible payment schemes can bring an abundance of benefits to your business and help you develop. Take a look below to find four benefits of offering flexible payments options.
- Access to new customers
Offering different flexible payment options gives you the opportunity to gain access to millions of new shoppers. Furthermore, these new customers will have greater purchasing power, meaning they have more funds available to make multiple purchases whilst also reassuring them that they are in control of their own financial situation.
- Increase sales
With customers having the opportunity to spread the cost of repayments over an agreed period of time, it allows them to have more confidence and purchase more expensive products or services than they usually would, which helps increase conversion, boost your sales, and facilitate business growth.
- Improve customer relationships
The modern consumer typically prefers instant results rather than saving up money the traditional way and then making the purchase. Additionally, they are more likely to keep coming back to you when you offer flexible payment options, knowing they can get what they want and pay for it over time. This will help increase trust, loyalty and overall improve the relationship. Customers who have positive experiences with your business tend to tell family and friends, which would also help your business get more customers through the door.
- Increase your market competitiveness
As mentioned previously, more businesses are starting to offer their customers the option of flexible finance. If your business is not one of them, existing and potential customers could begin to look elsewhere. However, by offering flexible finance options and excellent customer service, you could increase your market competitiveness and gain a strong foothold.
It’s clear that flexible payment schemes will continue to be an increasingly popular way for customers to purchase goods and services. At Buyline, we offer point-of-sale finance for businesses across multiple sectors, helping to increase customer loyalty, retention and boost your business sales. If you are looking to set up smart payment solutions for your business, contact us today by emailing email@example.com.